kotler_chapter6
Chapter 6 Business Markets and Business Buyer Behavior
1) In which of the following ways is GE like most other large companies?
A) It produces hundreds of products for a wide range of markets.
B) It has an entertainment division.
C) It has a finance division.
D) Most of its business comes from final consumers.
E) Most of its business comes from commercial and industrial customers.
Answer: E
Diff: 1 Page Ref: 168
Skill: Concept
Objective: 6-1
2) As a purchasing agent, Benni Lopez buys goods and services for use in the production of products that are sold and supplied to others. Benni is involved in ________.
A) consumer buying behavior
B) post-purchase dissonance
C) retail buyer behavior
D) business buyer behavior
E) interpretive business research
Answer: D
Diff: 1 Page Ref: 168
Skill: Concept
Objective: 6-1
3) Business buying behavior refers to the buying behavior of organizations that buy all of the following EXCEPT ________.
A) products for use in production of other products
B) services for use in production of other services
C) products purchased to resell to others
D) products purchased to rent to others
E) products purchased for personal consumption
Answer: E
Diff: 1 Page Ref: 168
Skill: Concept
Objective: 6-1
4) In one way or another, most large companies sell to ________.
A) consumers
B) other organizations
C) employees
D) not-for-profit companies
E) the service sector
Answer: B
Diff: 2 Page Ref: 168
Skill: Concept
Objective: 6-1
5) When compared to consumer markets, business markets are ________.
A) approximately the same
B) smaller
C) huge
D) somewhat larger
E) less complex
Answer: C
Diff: 2 Page Ref: 168
Skill: Concept
Objective: 6-1
6) Which of the following is NOT a way that business and consumer markets differ?
A) market structure and demand
B) nature of the buying unit
C) satisfaction of needs through purchases
D) types of decisions
E) decision processes
Answer: C
Diff: 3 Page Ref: 169
Skill: Concept
Objective: 6-1
7) There are many sets of ________ purchases made for each set of ________ purchases.
A) consumer; business
B) tangible; intangible
C) service; product
D) business; consumer
E) product; service
Answer: D
Diff: 2 Page Ref: 168
Skill: Concept
Objective: 6-1
8) Which of the following is true about business marketers in comparison to consumer marketers?
A) They deal with far fewer but far larger buyers.
B) They deal with far more but far small buyers.
C) They deal with a more elastic market.
D) They deal with fewer demands in fluctuation.
E) They deal with the same decision buying process.
Answer: A
Diff: 2 Page Ref: 169
Skill: Concept
Objective: 6-1
9) Hewlett-Packard and Dell buy Intel microprocessor chips because consumers buy personal computers. This demonstrates an economic principle called ________.
A) elastic demand
B) fluctuating demand
C) derived demand
D) joint demand
E) market demand
Answer: C
Diff: 2 Page Ref: 169
Skill: Concept
Objective: 6-1
10) The Pure Drug Company produces insulin, a product with a very stable demand, even though the price has changed several times in the past two years. Insulin is a product with ________ demand.
A) joint
B) service
C) inelastic
D) elastic
E) fluctuating
Answer: C
Diff: 2 Page Ref: 169
Skill: Concept
Objective: 6-1
11) The demand for many business goods and services tends to change more, and more quickly, than the demand for consumer goods and services does. This is referred to as ________ demand.
A) fluctuating
B) derived
C) inelastic
D) elastic
E) supplier
Answer: A
Diff: 1 Page Ref: 169
Skill: Concept
Objective: 6-1
12) Large business purchasers usually call for detailed product specifications, written purchase orders, careful supplier searches, and formal approval. These are all examples of how the business buying decision process is more ________ than the consumer buying decision process is.
A) formalized
B) creative
C) relationship-oriented
D) independent
E) concentrated
Answer: A
Diff: 2 Page Ref: 170
Skill: Concept
Objective: 6-1
13) The owners of the company you work for have developed a core network of suppliers they are working closely with to ensure an appropriate and dependable supply of products. This is an example of ________ management.
A) value chain
B) network relationship
C) channel captain
D) core channel
E) supplier development
Answer: E
Diff: 1 Page Ref: 170
Skill: Concept
Objective: 6-1
14) Although there are many differences between business buying behavior and consumer buying behavior, both respond to the same four stimuli: product, price, promotion, and ________.
A) precision
B) personal relationships
C) place
D) publicity
E) packaging
Answer: C
Diff: 2 Page Ref: 172
Skill: Concept
Objective: 6-2
15) In a typical organization, buying activity consists of two major parts: the buying ________ and the buying ________.
A) committee; time
B) time; reorder point
C) economic order quantity; reorder point
D) center; decision process
E) deciders; influencers
Answer: D
Diff: 3 Page Ref: 172
Skill: Concept
Objective: 6-2
16) The buying center and the buying decision process are affected by all of the following factors EXCEPT ________.
A) internal organization factors
B) interpersonal factors
C) individual factors
D) external environmental factors
E) self-concept factors
Answer: E
Diff: 2 Page Ref: 172
Skill: Concept
Objective: 6-2
17) Which business buying situation is the marketer's greatest opportunity and challenge?
A) modified rebuy
B) straight rebuy
C) new task
D) multiple rebuys
E) system rebuy
Answer: C
Diff: 2 Page Ref: 173
Skill: Concept
Objective: 6-2
18) In which type of buying situation would a supplier most likely focus on maintaining product
and service quality?
A) straight rebuy
B) modified rebuy
C) new task
D) systems task
E) solutions task
Answer: A
Diff: 3 Page Ref: 173
Skill: Concept
Objective: 6-2
19) You just lost a major account because a competitor provided the most complete system to meet the customer's needs and solve the customer's problems, and made the sale. In other words, the competition beat you with ________.
A) solutions selling
B) team selling
C) cross-functional skill
D) customer relationship management
E) promotions
Answer: A
Diff: 2 Page Ref: 173
Skill: Concept
Objective: 6-2
20) Another name for systems selling is ________ selling.
A) solutions
B) blanket contract
C) vendor-managed inventory
D) negotiated contract
E) periodic purchase
Answer: A
Diff: 1 Page Ref: 173
Skill: Concept
Objective: 6-2
21) The decision-making unit of a buying organization is called the ________.
A) business buyer
B) buying center
C) buying system
D) business-to-business market
E) supplier-development center
Answer: B
Diff: 1 Page Ref: 174
Skill: Concept
Objective: 6-2
22) A ________ consists of the actual users of products, those who control buying information,
those who influence the decisions, those who do the actual buying, and those who make the buying decisions.
A) supplier development team
B) cross-functional team
C) buying center
D) quality management center
E) partnership management team
Answer: C
Diff: 2 Page Ref: 174
Skill: Concept
Objective: 6-2
23) In routine buying situations, which members of the buying center have formal or informal power to select or approve the final suppliers?
A) users
B) influencers
C) gatekeepers
D) deciders
E) buyers
Answer: D
Diff: 1 Page Ref: 174
Skill: Concept
Objective: 6-2
24) A(n) ________ controls the flow of information to others in the buying center.
A) user
B) influencer
C) buyer
D) gatekeeper
E) decider
Answer: D
Diff: 1 Page Ref: 174
AACSB: Communication
Skill: Concept
Objective: 6-2
25) Don Amspacher, in his role on the buying committee, provides information for evaluating the alternative purchase decisions and helps define and set specifications for evaluating alternatives for purchasing. Don is a(n) ________.
A) user
B) influencer
C) decider
D) gatekeeper
E) buyer
Answer: B
Diff: 2 Page Ref: 174
AACSB: Communication
Skill: Concept
Objective: 6-2
26) Gretchen Kabor has formal authority to select the suppliers and arrange terms of purchase for many of the items her firm uses. Her role in the buying center is that of ________.
A) user
B) influencer
C) buyer
D) decider
E) gatekeeper
Answer: C
Diff: 2 Page Ref: 174
Skill: Concept
Objective: 6-2
27) A buying center is not a fixed, formally identified, unit within an organization, but rather a set of ________ assumed by different people for different purchases.
A) budgetary limits
B) informal job titles
C) buying roles
D) status roles
E) marketing positions
Answer: C
Diff: 3 Page Ref: 174
Skill: Concept
Objective: 6-2
28) Which of the following is NOT included in the decision-making unit of a buying organization?
A) individuals who use the product or service
B) individuals who influence the buying decision
C) individuals who make the buying decision
D) individuals who supply the product
E) individuals who control buying information
Answer: D
Diff: 2 Page Ref: 174
Skill: Concept
Objective: 6-2
29) Which of the following statements about buying centers is true?
A) The buying center is like a standing committee.
B) The buying center roles are specified on the organizational chart.
C) The typical buying center has five employees, one to assume each of the buying center's roles.
D) An individual's role in the buying center does not change.
E) The buying center may involve informal participants who are not obvious to sellers. Answer: E
Diff: 3 Page Ref: 175
Skill: Concept
Objective: 6-2
30) When suppliers' offers are very similar, business buyers have little basis for strictly ________.
A) emotional choice
B) rational choice
C) personal choice
D) intuitive choice
E) independent choice
Answer: B
Diff: 3 Page Ref: 175
Skill: Concept
Objective: 6-2
31) When competing products differ greatly, business buyers are more accountable for their purchase choices and tend to pay more attention to ________.
A) economic factors
B) emotional choice
C) intuition
D) personal factors
E) creative factors
Answer: A
Diff: 3 Page Ref: 175
Skill: Concept
Objective: 6-2
32) Buyers are heavily influenced by the current and expected economic environment. That includes which of the following buyer influences?
A) level of primary demand
B) economic outlook
C) the cost of money
D) A and B only
E) all of the above
Answer: E
Diff: 3 Page Ref: 175
Skill: Concept
Objective: 6-2
33) To ensure an adequate and available supply of key scarce materials, many companies are now willing to ________.
A) decrease levels of demand
B) buy and hold large inventories of the materials
C) eliminate distribution and warehousing partners
D) experiment with just-in-time technologies
E) reduce the length of the supply chain
Answer: B
Diff: 2 Page Ref: 175
Skill: Concept
Objective: 6-2
34) The major influences on the buying process at General Aeronautics include company policies and systems, technological change, and economic developments. The types of influences on the buying process in this scenario are most accurately categorized as ________ and ________.
A) individual; environmental
B) organizational; interpersonal
C) individual; organizational
D) environmental; interpersonal
E) organizational; environmental
Answer: E
Diff: 3 Page Ref: 176
Skill: Concept
Objective: 6-2
35) Which of the following types of factors influencing members of a buying center are typically the most difficult for marketers to assess?
A) economic
B) technological
C) interpersonal
D) organizational
E) political
Answer: C
Diff: 3 Page Ref: 176
Skill: Concept
Objective: 6-2
36) Policies, procedures, and systems are all examples of ________ influences on business buyer behavior.
A) environmental
B) authoritative
C) interpersonal
D) organizational
E) cultural
Answer: D
Diff: 2 Page Ref: 176
Skill: Concept
Objective: 6-2
37) Status, empathy, and persuasiveness are all examples of ________ influences on business buyer behavior.
A) environmental
B) individual
C) interpersonal
D) organizational
E) cultural
Answer: C
Diff: 2 Page Ref: 176
Skill: Concept
Objective: 6-2
38) Charlie Van Dusen, executive vice president of National Central Bank, is going through all of the stages of the buying process to purchase a computer system for the bank. Charlie is facing a(n) ________ situation.
A) straight rebuy
B) modified rebuy
C) new-task buying
D) limited budget
E) independent buying
Answer: C
Diff: 2 Page Ref: 176
Skill: Concept
Objective: 6-3
39) Which of the following is an example of an internal stimulus that might lead to the business buying process stage of problem recognition?
A) A buyer gets a new idea from an advertisement.
B) A buyer gets a new idea at a trade show.
C) A buyer is unhappy with a current supplier's price.
D) A buyer receives a call from a salesperson offering better service terms.
E) A buyer learns about a new product at an industry convention.
Answer: C
Diff: 2 Page Ref: 177
Skill: Concept
Objective: 6-3
40) The first step of the business buying process is ________.
A) general need description
B) alternative evaluations
C) problem recognition
D) order-routine specification
E) performance review
Answer: C
Diff: 2 Page Ref: 177
Skill: Concept
Objective: 6-3
41) Business marketers often alert customers to potential problems and then show how their products provide solutions. These marketers are hoping to influence which stage of the business buying process?
A) general need description
B) alternative evaluations
C) problem recognition
D) order-routine specification
E) performance review
Answer: C
Diff: 2 Page Ref: 177
Skill: Concept
Objective: 6-3
42) The purchasing agent at your company is working with engineers and users to define the items to purchase by describing general characteristics and quantities needed. He is also ranking the importance of reliability, durability, and price. The buyer is preparing a(n) ________.
A) value analysis
B) product specifications list
C) general need description
D) order-routine specification
E) product proposal
Answer: C
Diff: 2 Page Ref: 177
Skill: Concept
Objective: 6-3
43) In which stage of the business buying process is a supplier most likely to provide a buyer with information about the values of different product characteristics?
A) problem recognition
B) general need description
C) supplier search
D) supplier selection
E) order-routine specification
Answer: B
Diff: 3 Page Ref: 177
Skill: Concept
Objective: 6-3
44) Which of the following is the process of the buying center deciding on the best product characteristics?
A) value analysis
B) general need description
C) marketing myopia
D) purchase order
E) product specification
Answer: E
Diff: 1 Page Ref: 177
Skill: Concept
Objective: 6-3
45) During which stage of the business buying process is a buyer most likely to conduct a value analysis, carefully studying components to determine if they can be redesigned, standardized, or made less expensively?
A) proposal solicitation
B) general need description
C) order-routine specification
D) performance review
E) product specification
Answer: E
Diff: 3 Page Ref: 177
Skill: Concept
Objective: 6-3
46) Empire Products has begun a process to find the best suppliers. Empire Products is actively engaged in ________.
A) value analysis
B) performances review
C) supplier search
D) supplier control
E) supplier selection
Answer: C
Diff: 1 Page Ref: 177
Skill: Concept
Objective: 6-3
47) A buyer would be most likely to review trade directories in which stage of the business buying process?
A) problem recognition
B) general need description
C) product specification
D) supplier search
E) supplier selection
Answer: D
Diff: 2 Page Ref: 177
Skill: Concept
Objective: 6-3
48) In the generally accepted stages of the business buying process, the step following product specification is ________.
A) proposal solicitation
B) supplier search
C) problem recognition
D) general need description
E) order-routine specification
Answer: B
Diff: 2 Page Ref: 177
Skill: Concept
Objective: 6-3
49) In the generally accepted stages of the business buying process, the step following problem recognition is ________.
A) proposal solicitation
B) supplier search
C) product value analysis
D) general need description
E) performance review
Answer: D
Diff: 2 Page Ref: 177
Skill: Concept
Objective: 6-3
50) Members of the buying center at ABC Kid's World are drawing up a list of desired toy supplier attributes and their relative importance. Next, they intend to compare several suppliers to these attributes. In which step of the business buying process is the buying center at ABC Kid's World engaged?
A) supplier search
B) proposal solicitation
C) supplier selection
D) order-routine specification
E) performance review
Answer: C
Diff: 2 Page Ref: 178
Skill: Concept
Objective: 6-3
51) Which of the following statements about the supplier selection stage of the business buying decision process is true?
A) Price is the only factor businesses consider before making a purchase decision.
B) Even companies that have adopted a total quality management approach consider price to be the most important factor in choosing a supplier.
C) Price and warranty are the only two factors businesses consider before making a purchase decision.
D) Buyers do not negotiate for better terms before making a final supplier selection.
E) Before selecting a supplier, many companies consider the supplier's reputation, ethical corporate behavior, and honest communication.
Answer: E
Diff: 2 Page Ref: 178
Skill: Concept
Objective: 6-3
52) During the ________ stage of the business buying decision process, the buying center assesses the proposals.
A) proposal solicitation
B) supplier selection
C) product value analysis
D) order-routine specification
E) performance review
Answer: B
Diff: 2 Page Ref: 178
Skill: Concept
Objective: 6-3
53) In the case of maintenance, repair, and operating items, buyers may use a ________ rather than periodic purchase orders.
A) blanket contract
B) negotiable instrument
C) binding purchase order
D) locked-in sale
E) solutions purchase
Answer: A
Diff: 2 Page Ref: 179
Skill: Concept
Objective: 6-3
54) In which stage of the business buying process is a supplier's task to make sure that the supplier is giving the buyer the expected satisfaction?
A) problem recognition
B) performance review
C) supplier search
D) supplier selection
E) order-routine specification
Answer: B
Diff: 2 Page Ref: 179
Skill: Concept
Objective: 6-3
55) Following a purchase, the buyer and seller would both monitor which phase of the new-task buying situation?
A) order-routine specifications
B) supplier selection
C) performance review
D) value analysis
E) vendor analysis
Answer: C
Diff: 2 Page Ref: 179
Skill: Concept
Objective: 6-3
56) Under a ________, a supplier monitors and replenishes a buyer's stock automatically as needed.
A) vendor-managed inventory
B) negotiated contract
C) stand-alone contract
D) periodic purchase order
E) blanket contract
Answer: A
Diff: 2 Page Ref: 179
Skill: Concept
Objective: 6-3
57) Which of the following accurately describes a cultural difference international marketers should be aware of?
A) Outside of English-speaking countries, most business leaders do not speak English.
B) British businesspeople are accustomed to making more business deals over the telephone than in person.
C) German people tend to be impressed by overstatement and showiness.
D) Japanese people tend to put a high value on rank.
E) French businesspeople are accustomed to building relationships between buyer and seller through quick and easy familiarity.
Answer: D
Diff: 3 Page Ref: 179
AACSB: Multicultural and Diversity
Skill: Concept
Objective: 6-3
58) Which of the following is the best advice for an international marketer planning to interact with businesspeople from many different cultures?
A) Trust your instincts and behave as you normally do.
B) Remember that countries all over the world are fascinated with American culture.
C) Cultures really are different, so do your best to learn about those differences.
D) Use the same strategies with all of your clients, no matter what their cultural backgrounds are.
E) Assume that businesspeople from different cultures will make accommodations for you. Answer: C
Diff: 2 Page Ref: 179
AACSB: Multicultural and Diversity
Skill: Concept
Objective: 6-3
59) Instead of focusing on managing individual purchases, a seller should focus on managing the ________.
A) building a good reputation in the marketplace
B) organizational environment
C) use of blanket contracts
D) order-routine specifications
E) total customer relationship
Answer: E
Diff: 2 Page Ref: 180
Skill: Concept
Objective: 6-3
60) Which of the following can be especially useful for a company that needs to conduct secure and frequent communications and transactions with key suppliers?
A) an intranet
B) an extranet
C) buying centers
D) a reverse auction
E) a trading exchange
Answer: B
Diff: 2 Page Ref: 180
AACSB: Use of IT
Skill: Concept
Objective: 6-3
61) Reverse auctions, trading exchanges, and company buying sites are all ways that companies can participate in ________.
A) secure extranets
B) product value analysis
C) vendor-managed inventory systems
D) blanket contracts
E) e-procurement
Answer: E
Diff: 1 Page Ref: 180
AACSB: Use of IT
Skill: Concept
Objective: 6-3
62) The Bentley department store chain makes extensive use of e-procurement. As a buyer, the store should expect to enjoy all of these benefits of e-procurement EXCEPT ________.
A) greater access to new suppliers
B) lower purchasing costs
C) hastened order processing and delivery
D) reduced payroll
E) more time for purchasing agents to focus on strategic issues
Answer: D
Diff: 2 Page Ref: 181
AACSB: Use of IT
Skill: Concept
Objective: 6-3
63) B-to-B e-procurement yields many benefits. These include all of the following EXCEPT ________.
A) reduced transaction costs
B) more efficient purchasing for both buyers and sellers
C) elimination of inventory problems
D) reduced order processing costs
E) elimination of much of the paperwork associated with traditional ordering procedures Answer: C
Diff: 2 Page Ref: 181
AACSB: Use of IT
Skill: Concept
Objective: 6-3
64) A problem with the rapidly expanding use of e-purchasing is that it ________.
A) can erode established customer-supplier relationships
B) saves less time than expected
C) generates more transactions to document
D) generates less cost savings than predicted
E) reduces the amount of time purchasing people can spend on strategic issues
Answer: A
Diff: 2 Page Ref: 181
AACSB: Use of IT
Skill: Concept
Objective: 6-3
65) The leading barrier to expanding electronic links with customers and partners online is ________.
A) cost
B) lack of trained personnel
C) concern over security
D) lack of knowledge
E) lack of evidence of efficiencies gained through e-procurement
Answer: C
Diff: 2 Page Ref: 181
AACSB: Use of IT
Skill: Concept
Objective: 6-3